1. India Clinches Stake in Russian Oilfields: BS
Indian firms on Wednesday clinched a slew of deals worth around $4 billion with long-time strategic partner Russia for purchasing stakes in two key East Siberian oilfields operated by Rosneft, the world’s largest publicly-traded oil company. The move is expected to bolster India’s energy security amid subdued global oil prices.
As part of the deal, a consortium of three public sector undertakings (PSUs) – Oil India (OIL), Indian Oil Corp (IOC) and Bharat Petroleum Resources (BPRL) – will pay $1.28 billion (Rs 8,618 crore) for a 29.9 percent stake in Rosneft-operated Taas-Yuryakh oilfield based on a share purchase agreement (SPA) signed on Wednesday.
The deal values the oilfield at $4.2 billion (Rs 28,280 crore) and is expected to be closed by September.
Read more here.
2. Debt-Equity Swap? Govt Looks to More Bank Help For Air India: FE
Air India may be a loss-making carrier for more than two decades. It may have a bloated workforce, and whatever recent strides it has made in terms of projections of turning operationally profitable in FY16 and reducing its losses by almost half is largely on the back of low jet fuel prices and government bailout money; but Minister of State for Civil Aviation Mahesh Sharma feels that banks and private parties will be keen to hold a stake in it, if offered.
In an interview with The Financial Express, Sharma said that the government plans to bring down its stake in Air India to below 51 percent, by basically asking the banks to convert their debt into equity. However, he said that the timeframe for this has not been decided and the price at which the banks would be proposed to take this step has not been worked out.
The airline’s debt currently stands at over Rs 40,000 crore.
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3. Sector Funds Beat Diversified Peers in 10-Year SIP Returns: ET
Systematic investment plans (SIPs) in sector and thematic funds have fared far better than those in diversified equity mutual funds over a 10-year period. An SIP of Rs 10,000 per month in five sector funds vis a vis the top five diversified equity mutual funds (by AUM) over 10 years would have made investors richer by Rs 13.71 lakh.
A lot of these defensive sectoral funds and themes like pharma, FMCG and MNC benefitted from volatility globally between 2008 and 2015. At such times, cash-rich companies and low-debt MNCs tend to outperform.Vidya Bala, Head of Research, Fundsindia.com
Bala advises investors to have a maximum exposure of 10-15 percent to sectoral funds/themes.
Sectoral funds take concentrated bets and if you get the cycle wrong, you could be a loser.Rupesh Bhansali, Head-Distribution, GEPL Capital
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4. LS Passes Aadhaar Bill in Original Form: Livemint
Aadhaar is set to receive statutory backing after Parliament passed a Bill that will make the unique identification project the central plank for delivering government subsidies and welfare benefits.
Only the President’s signature is now required for the Bill to become law, which will enable the government to reset the subsidy regime and deliver state benefits directly to their intended beneficiaries, plugging leakages.
The money will go into the bank or post-office accounts of beneficiaries linked to the 12-digit biometric identity number provided by the Unique Identification Authority of India (UIDAI).
Late on Wednesday evening, the Lok Sabha rejected five amendments proposed by the Rajya Sabha earlier in the day and passed the Bill in its original form.
Read more here.
5. Petrol Turns Dearer by Rs 3.07 a Litre, Diesel Up Rs 1.90: FE
Petrol price was hiked on Wednesday by Rs 3.07 a litre, reversing its 3-month declining trend, while diesel rates went up by Rs 1.90 per litre.
Petrol in Delhi will now cost Rs 59.68 per litre as against Rs 56.61 currently, said Indian Oil Corporation, the nation’s biggest fuel retailer. Similarly, a litre of diesel will cost Rs 48.33 compared with Rs 46.43 a litre at present.
While the hike in petrol price turns the clock back on the declining trend since January, this is the third straight fortnightly increase in diesel rates. Petrol price was last cut by Rs 3.02 from 1 March and Wednesday’s hike has wiped off all of that. Diesel price on that day was hiked by Rs 1.47.
Read more here.
6. Banks May Have to Take a Haircut on Kingfisher Office! FE
The e-auction of Kingfisher House in Mumbai, slated for Thursday, could turn out to be a flop since no buyer had approached SBICAP Trustee till late Wednesday evening, according to The Financial Express. The trustee company had not received the earnest money deposit (EMD) payable to enable participation in the auction. The reserve price for the property is Rs 150 crore. The last date for submission of bid application documents, EMD amount of Rs 15 crore and KYC documents was Monday, 5 pm.
Sources told The Financial Express that bidders found the reserve price too high.
Buyers are saying that last year, the property was estimated to be Rs 100 crore, so Rs 150 crore is a much higher price.Source
SBICAP Trustee Company, a wholly-owned subsidiary of SBI Capital Markets, in a public notice last month announced e-auction of the property, situated near the Chhatrapati Shivaji International Airport.
The auction is part of the recovery process of dues from the airline’s promoter Vijay Mallya, under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (Sarfaesi), 2002.
Read more here.
7. Sellers On Ecommerce Sites Like Flipkart, Amazon, Complain of Being Penalised For Returned Goods: ET
Sellers on marketplaces such as Amazon, Flipkart and Snapdeal say they’re being penalised because buyers are increasingly returning merchandise, adding to operational costs that they have to bear. About 1,000 sellers have formed the eSeller Suraksha Forum to convey their concerns and one vendor has even sent a letter to Amazon founder Jeff Bezos to draw his attention to the problem.
The sellers, none of whom wants to be identified, complain that the marketplaces are not sharing logistics costs or returning commissions in case a customer opens the package and then doesn’t want the item.
They put the entire blame on us, saying that we shipped fake or faulty products leading to return.Forum member
Read more here.
8. Wall Street Closes at 2016 High as Fed Signals Fewer Rate Hikes: BS
The S&P 500 closed at its highest level of the year on Wednesday after the US Federal Reserve left interest rates untouched and signalled fewer rate hikes in coming months.
The Fed indicated moderate US economic growth and “strong job gains” would allow it to tighten policy this year with fresh projections showing policymakers expected two quarter-point hikes by the year’s end, half the number seen in December.
But the US central bank noted the United States continues to face risks from an uncertain global economy.
Because of that uncertainty, “the committee judged it prudent to maintain the current policy stance at this meeting,” Fed Chair Janet Yellen said.
The decision to keep rates steady was in line with analyst predictions, but the Fed’s tone was surprising to some.
Read more here.
9. LSE and Deutsche Börse Seal $30-Bn Trading Tie-Up: BS
Deutsche Börse and London Stock Exchange Group (LSE) agreed to combine in a $30 billion deal to create a European trading powerhouse better able to compete with US rivals encroaching on their turf.
However, the deal, which marks a third attempt to link the exchanges, may prompt a takeover war after New York Stock Exchange owner Intercontinental Exchange said it may bid for the British group.
Nearly 16 years after Deutsche Börse first tried to take over LSE, the exchanges said last month they were discussing an all-share merger, which they confirmed on Wednesday would give Deutsche Börse shareholders 54.4 percent and LSE investors 45.6 percent of a new company.
Read more here.